Key Points and Recommendations of the Royal Bank Commission Report | Australia news

Kenneth Hayne's report on the banking and financial services sector 24 references to regulators Asic and Apra will take action for misconduct.

He also did 76 recommendations to solve problems and contained the scathing criticism of executives:

Key points:

• Bankers are not named and ashamed, However, Kenneth Hayne anticipates the possibility of more than 20 lawsuits involving major banks, at the discretion of the regulators, some of which could be criminal, other civil and both at the same time.

• All major banks are listed, with the exception of Westpac, out of 24 requests to add "future" shares.

• Regulators remain as they are, but are able to do better with respect to law enforcement. If Asic does not resume his game and does not prosecute more often, there remains only one simple solution: it is quite possible to make an investigative body and to entrust powers of pursuit to other thing.

• The report indicates the end of practices such as conflicting compensation – you can not advise a client and be rewarded by a banking / financial service that provides that client at the same time, for example. This seems like a pretty tough task, but it took a royal commission to get here.

• There will be a compensation system of last resort, financed by the banks. The government is currently developing legislation on this issue. All banks will have to pay because it's part of their license. For those who have belonged to entities that have a stomach ache, you will also be covered.

What the government will do in response to some of Hayne's 76 recommendations:

• Mortgage brokers will have to act in the best interest of the borrowers.

• Conflicts of interest brokers and consumers will be abolished by banning fees and other improper commissions from lenders as of July 1, 2020. A further review will be conducted in three years on the consequences of the elimination of upfront commissions and the pbadage of to the borrower. compensation structure.

• The acquired rights in the conflicting remuneration provisions must expire on January 1, 2021 and, in addition to the recommendation of the Commission, require that all vested earnings on that date be subject to delivery to customers.

• Ensure that pension fund members have only one default account (for new members entering the system).

• Vulnerable consumers will be protected by clarifying and strengthening the provisions on unsolicited sales (anti-mowing), including for retirement and insurance products.

• The deduction of all prohibited consulting fees (other than investor-to-investor advice) from MySuper accounts.

• Expansion of the definition of small business in the bank code.

• Establishment of a comprehensive national system of mediation for agricultural debt.

• Elimination of default interest on loans in areas affected by natural disasters.

• Appointment of receivers or any other form of external director only as an appeal as a last resort.

• More inclusive practices for Aboriginal and Torres Strait Islanders.